THE EDITOR, Sir:
IN THE Letter of the Day
published in The Gleaner of August 24, the author states that the "NHT's main purpose is to build houses" and then goes on to criticise us for allegedly
abandoning this purpose. The author's premise that our main purpose is to build houses is
correct. However, we disagree completely that we no longer serve this purpose. We would like to clarify the situation in the interest of the writer and the
public in general.
The writer offers four pieces of 'evidence'; the role of the NHT in the proposed Harmony Cove resort development in Trelawny; the Mission of the Trust, its
contribution to housing and the composition of its Board of Directors. The author's reference to "glitzy parks in New Kingston" also transmits the wrong message. I will deal with each issue separately.
Harmony Cove development:
As mentioned in our letter to the editor published in The Gleaner of August 21, 2004, the NHT is not funding the building of hotels in the Harmony Cove development. As a joint venture partner with the Development Bank of Jamaica, the Trust has purchased the real estate on which the development will take place, developed a concept for the project and is actively
marketing the concept to investors who will be investing their funds, not the NHT's. The Trust's investment in the project amounts to approximately 1 per cent of its assets.
CONCERNS
The author's concerns about the project's viability are unfounded. The many expressions of interest in the project which we have already received from entrepreneurs is testimony that the project is a viable one. The price of the property has appreciated significantly since we bought it and, if we choose to sell it today, a highly favourable return on the NHT's investment would be guaranteed.
The Trust's mission is "to improve the quality of life of Jamaicans by facilitating home ownership and community development, particularly among low-income earners". Contrary to the writer's assertions, we are not focused on "upscale housing". Traditionally most of our mortgagors fell in the lowest income band (2 per cent). In recent years this distribution changed, and now more of our mortgagors are in the 4-9 per cent income band, but without the NHT these persons would not have been able to afford a home loan. In the financial year 2003-2004, of a total 8,265 new loans created, 63.5 per cent were awarded to persons earning less than $10,000 per week. The fact is that the NHT still offers the most affordable home ownership options to lower-income householders.
In addition, through special projects such as the Inner-City Housing Project, the Sugar Workers' Housing Programme and Relocation 2000, we have been catering to the lowest income earners, contrary to the writer's allegation. Some 5,000 new solutions are projected to be built for inner-city residents in selected areas of the Kingston Metropolitan Region and some rural locations. Under the ICHP, we are also refurbishing a
number of government-built apartment complexes in targeted areas.
RELOCATION 2000
The Trust is spending $5
billion on the Sugar Workers' Programme to provide an estimated 10,000 sugar workers and their families with affordable houses, while some 700 households comprising persons who lived in squalid squatter-type housing conditions, are benefitting under the Relocation 2000 project.
Far from becoming 'myopic' as the writer is alleging, we have expanded our mission and vision to allow us to operate in a
manner which provides greater benefits to our contributors and the wider Jamaica.
As a single entity, the NHT has been and continues to be the prime provider of housing and mortgage products both in Jamaica and the wider Caribbean. Since our inception in 1976, we have provided over 100,000 new mortgages to
contributors and financed and/or developed over 54,000 new housing solutions. At the end of March 2004, the NHT had 66 per cent of its total assets of $64.4 billion, invested in housing.
The significant role that the NHT is playing in the housing sector over the past three years, for example, is reflected in the fact that of a total 30,863 new mortgages created in the sector, the Trust accounted for 20,426 or 66 per cent. In addition, the NHT also provides a significant amount of interim financing for private developers and their housing projects. For the writer to imply that the Trust is not active in the housing market is therefore a completely indefensible conclusion which is not
supported by the facts.
We are happy to advise that the interest of the Jamaican worker is strongly represented on the NHT Board of directors and that this has been so since the Trust's inception. Sitting on the current board are four trade unionists including the head of the Jamaica Civil Service Association. A representative of the teaching profession is also on our Board.
EMANCIPATION PARK
The writer's reference to this facility which has gained the wide-scale acceptance of thousands of Jamaicans, represents an exaggeration of the facts. The Trust has no apologies for establishing a national monument such as that which the park
represents. We believe the benefits members of the public have derived and continue to derive from the park (not parks as the writer contends), far outweigh the cost of establishing and maintaining the facility.
I am, etc.,
HUGH REID
Managing Director (Acting)
National Housing Trust
